Foxconn and Vedanta have pledged $19.5 billion (£16.9 million) to establish one of India’s first chip manufacturing facilities.
The Taiwanese company and the Indian mining giant have joined forces in response to the government’s effort to increase chip production in the nation.
Last year, the administration of Prime Minister Narendra Modi unveiled a $10 billion plan to entice investors.
The project, which will be constructed in Gujarat, Mr. Modi’s home state, has been given incentives.
Anil Agarwal, chairman of Vedanta, stated that the company was still on the lookout for a 400-acre location close to Ahmedabad, the capital of Gujarat.
In the past, however, it has been difficult for both Indian and foreign companies to secure huge areas of land for projects. Experts note that despite Mr. Modi’s famous “Make in India” strategy – aimed to entice global businesses – obstacles persist in managing the country’s bureaucracy.
However, Gujarat’s chief minister Bhupendrabhai Patel stated that the project “would be received with a red carpet… as opposed to red tape.”
The project is anticipated to generate 100,000 employment in the state, which is scheduled to have elections in December and where the BJP faces heavy resistance from opposition parties.
The Memorandum of Understanding stipulates that the facility will begin chip production within two years.
“India’s own Silicon Valley is now one step closer,” Mr. Agarwal tweeted.
India has pledged $30 billion to revamp its IT sector. To become less reliant on chip producers in Taiwan, the United States, and China, the government stated that it will increase incentives for chipmakers beyond the first $10 billion.
“Gujarat is known for its industrial growth, green energy, and smart cities. Increasing confidence in establishing a semiconductor facility as a result of a bettering infrastructure and robust government backing “Vice president of Foxconn Semiconductor Group Brian Ho states.
Foxconn serves as the company’s technical partner. Vedanta finances the initiative to diversify its interests in the technology industry.
Vedanta is the third corporation in India to declare ambitions to construct a chip facility. A collaboration between ISMC and IGSS Ventures, located in Singapore, said that it has inked agreements to construct semiconductor factories in the country over the next five years.
